Time to Buy Stable Value Funds?

With stocks and bonds bid up high, investors interested in safeguarding 401(k) capital may want to buy stable value funds.

For investors looking to protect 401(k) funds from a short-term tumble in both stocks and bonds, stable value funds may be the best of a limited set of choices.

The funds are available in about half of 401(k) plans. While money market funds currently have yields near zero, many stable value funds pay more than 2%. Both types of funds seek to maintain (but don't guarantee) stable share prices, but there are important differences. Money market funds hold safe, short-term and highly liquid investments, like Treasurys. Stable...